Market research firm Euromonitor said limited-service restaurants have the potential to grow to $626.9 million by 2025 from this year’s $354 million, a compounded growth of 12.1 percent.
Euromonitor said this segment of the food business that encompasses the fast-food industry and fast-casual restaurants industry is poised for a swifter recovery for the forecast period, no small thanks to alternative business channels like takeaway and to-go ushered by the coronavirus disease 2019 pandemic.
Limited-service restaurants will also benefit from a wider store network than full-service restaurants.
Euromonitor said other trends that became a necessity due to the pandemic – stronger delivery, takeaway and drive-through channels, along with group/sharing meals – will likely remain to some extent for the period.
Euromonitor’s forecast was used as part of the The Figaro Group Inc.’s outlook on the pizza restaurant industry in the Philippines for the medium- term.
Euromonitor noted that as a result of the pandemic, the limited-service pizza restaurant dipped to $337.2 million in 2020, compared to 2019’s $492.9 million. Between 2016 and 2019 the limited-service pizza restaurant from just $408.6 million in the base year.
“There was a knee-jerk reaction that caused sales to dip by 31.6 percent to reach $337.2 million in 2020 following a series of quarantine measures that placed restrictions on movements in the country. Many businesses suffered as a result. Hence, the single year of poor performance pulled down the overall growth to compounded growth of -3.8 percent over the historic period,” it said.
Euromonitor noted that at least 76 percent of the pizza limited-service industry is dominated by chained players, of which four are homegrown brands.
Euromonitor also noted that with the onset of the pandemic, many physical outlets of limited-service pizza restaurants were required to temporarily close with online delivery platforms serving as its lifeline to consumers.
